Lvmh: LVMH sees profit up 23% in H1 despite inflation

(BFM Bourse) – The world leader in luxury goods has managed to generate a profit of 6.5 billion euros in the first six months of 2022, much better than in 2021.

LVMH, the world number one in the luxury segment, announced on Tuesday that it had posted net income of 6.5 billion euros in the first half, up 23% from the same period in 2021, whose performance has already been described as a “record”. was.

Bernard Arnault’s group’s turnover between January and June was 36.7 billion euros, up 28%, driven by the leading fashion and leather goods division (Louis Vuitton, Dior, Celine, etc.) which sold just 18 billion euros Sales (+ 31%), LVMH said in a press release.

“LVMH is off to an excellent start to the year with all of our businesses participating,” said CEO Bernard Arnault, quoted in the press release, “we head into the second half of the year with confidence, but given the current geopolitical and public health context, we remain.” vigilant”.

The group’s revenue is above consensus from Bloomberg and Factset, which forecast €35.4 billion and €36 billion, respectively.

Recurring operating income for the first half was 10.2 billion euros, up 34% from the same period in 2021. The ongoing operating margin was 27.9%, up 1.3 points from 2021.

The Fashion and Leather Goods division is the driving force of the group

The group is supported by its flagship Fashion and Leather Goods division, although it does not detail the financial performance of its brands.

LVMH ensures that “Louis Vuitton, Christian Dior, Fendi, Celine, Loro Piana and Loewe are all gaining market share and breaking profitability records.”

Sales of wines and spirits (Ruinart, Moët et Chandon, Hennessy, etc.) increased by 23% to 3.3 billion euros, while that of the perfume and cosmetics sector (Guerlain, Givenchy, Kenzo, etc.) increased by 20% to 3.6 Billion euro .

The watch and jewelry sector has a turnover of almost 5 billion (+22%), thanks in particular to “a creative dynamism”, notably from “Tiffany, Bulgari and TAG Heuer”.

The Selective Retailing division posted €6.6 billion in sales (+30%) thanks to “a strong rebound” from Sephora, which announced in July it would be selling all of its 88 stores in Russia to its local general manager without disclosing the amount the transaction.

Geographically, Europe and the United States rose sharply, according to LVMH, while Asia saw slower growth due to a second quarter impacted by new health restrictions in China.

(With AFP)